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WorksheetsTrade Facilitation
Total questions: 110
Worksheet time: 9hrs 10mins
Which of the followings are TRUE about trade facilitation?
How procedures, regulations, and related documents can be improved or reduced
Remove compliance with national requirements, collect tariff revenues, observe regulations
Government and trade operators monitor and control the movement of goods, delivery of services and related financial flows
Simplify the process and minimize transaction costs while maintain effective governmental control
Transparent and efficient implementation of rules and regulations
What can be understood about trade faciliation?
Systematic rationalization of customs procedures and documents
Cover measures that affect movement of goods between sellers and buyers, along the entire supply chain
Does not cover collecting relevant information for statistical purposes, ensuring national security and preventing illegal acts
Trade procedures and documentation can be major obstacles to trade
What does WTO stand for?
World Trading Organization
Worldwide Trade Organization
World Trade Organization
World Trade Operation
What does WCO stand for?
Worldwide Custom Organization
World Custom Organization
World Custom Operation
World Cooperation Organization
Which of the following are TRUE about International Trade Procedure?
Activities and formalities involved in collecting, presenting, communicating, and processing data for the movement of goods
Activities and formalities involved in collecting and processing data for the movement of goods
Administrative processes at the border
Focus of trade negotiations in WTO
What do OECD, APEC, WCO and ICC focus on?
Simplification, standardization, and harmonization of procedures and associated information flows to move goods and make payments
Simplification, standardization, and harmonization of procedures and associated information flows to reduce goods and make payments
Include at-the-border processes and procedures, sometimes behind-the border
Avoidance of unnecessary restrictiveness by applying modern techniques, while improving quality of controls in an internationally harmonized manner
What does UN/CEFACT stand for?
United Nation Center for Electronic facilitation and Trade Business
United Nation Center for Trade facilitation and Electronic Business
United Nation Center of Facilitation and Cross-border Trade
What does OECD stand for?
Organization for Electronic and Cooperation Development
Organization for Electronic Cooperation Development
Organization for Economics Cooperation and Development
What does ICC stand for?
International Centre of Commerce
International Chamber of Commerce
International Centre of Cooperation
International Chamber of Cooperation
What does APEC stand for?
Asia-Pacific Economics Centre
Asia-Pacific Economics Cooperation
Asia-Pacific Economic Centre
Asia-Pacific Economic Cooperation
What are the benefits of trade facilitation?
Improve trade competitiveness
Increase FDI
Increase participation of SMEs in international trade
Improved economic growth prospects: port efficiency, customs environment, regulatory environment, and e-business usage
Which costs are included in implementing trade facilitation measures?
Institutional costs
Regulatory and legislative costs
Equipment and infrastructure costs
Awareness-raising and change-management costs
What are NOT TRUE about institutional costs?
Does not require setting up new units and additional human and financial resources
Does not include training costs
Appropriate coordination and cooperation between border authorities are important elements
Clarification of border agencies' responsibility and cooperation is not challenging
What can be included in training costs?
Recruit new and expert staffs
Train staff in training centers
Improve underdeveloped infrastructure
On-the-job training
Import trained staff among ministries/agencies
What are TRUE about regulatory and legislative costs?
Resources required for legislative and regulatory work differ depending on legislative structures, procedures and frequency of changes
Regulatory changes are undertaken in a wide modernization context and not confined to trade facilitation
Require preparatory work to properly assess the existing regulatory framework, ensure consistency and coherence with domestic policies and identify potential unintended consequences on various users
Involve time and specialized staff in regulatory work
Most changes pertinent to trade facilitation seem to be handled at the operational level and entail little additional cost
Which of the following are TRUE about equipment/infrastructure costs?
Some measures are more readily implemented with appropriate equipment and infrastructure.
ICT products and infrastructure mainly enhance effectiveness and efficiency but only incidentally sustain TF measures
ICT products and infrastructure mainly enhance effectiveness and efficiency and sustain TF measures
Which of the following are NOT TRUE about awareness-raising and change-management costs?
Efficiency of TF measures are linked to the interaction of border agencies with economic actors and capacity/willingness to comply with new modes of operation
Reduce understanding and positive involvement of private sectors
Private stakeholders are not included in governmentally-funded training and capacity building activities
Efficiency of TF measures are not linked to the interaction of border agencies with economic actors and capacity/willingness to comply with new modes of operation
What are the four pillars of TF?
(a)
What are the purposes of international and regional organizations on TF?
Develop and administer conventions and agreement relating to TF
Develop relevant evaluation criteria, provide recommendations, implementation guidance and other tools
Provide the necessary professional support and help build competitiveness for developing countries and transition economies
Provide an international forum to discuss issues related to TF
What is TRUE about Transparency?
Promotes openness and accountability of a government's and administration's actions
Entails disclosure of information, such as laws, regulations, etc., readily accessible to public
Regulatory information should be published and disseminated, when possible, prior to enforcement to allow parties concerned to take note of it and make necessary changes
Relevant stakeholders and the general public should participate in the legislative process, by providing their views and perspectives on proposed laws prior to enactment
What is Simplification?
the process of adding trivial elements in trade formalities, processes and procedures to facilitate international trade
the process of eliminating all unnecessary elements and duplications in trade formalities, processes and procedures
the process of eliminating all necessary elements and duplications in trade formalities, processes and procedures
Which of the following are TRUE about Harmonization?
Either as part of a regional integration process or as a result of business decisions
The alignment of national procedures, operations and documents with international conventions, standards and practices.
The introduction of national procedures, operations and documents with international conventions, standards and practices.
Come from adopting and implementing the same standards as partner countries
Come from adopting and implementing different standards as partner countries
What can be understood about Standardization?
Standards are not to be used to align and, eventually, harmonize practices and methods
The process of developing formats for practices and procedures, documents and information internationally agreed by one party and applied in the others
The process of developing formats for practices and procedures, documents and information internationally agreed by various parties
Standards are used to align and, eventually, harmonize practices and methods
What are NOT true about the benefits of TF?
A national policy on trade facilitation is not a key factor in the development of export competitiveness
Inefficient trade-related procedures and processes can delay the delivery of products to oversea markets
Developing economies with strong trade facilitation environments still cannot attract high-value investments
SMEs are more represented in international trade compared to exporters and importers in large firms despite at-the-border costs
Port efficiency has less impacts on trade than regulatory barriers, customs and e-business usage
What are TRUE about the benefits of TF?
Improvements in the trade facilitation environment can reduce variable costs of sending and receiving goods across borders, thereby increasing the value of imports or exports
Benefit smaller firms than large firms on aggregate
Improvements in customs and greater e-business use significantly expands trade, but to a lesser degree than the effect of ports or regulations
SMEs are less represented in international trade compared to exporters and importers in large firms partly due to at-the-border costs
Port efficiency has less impacts on trade than regulatory barriers, customs and e-business usage
What are the Basic Principles of TF?
Enquiry points should be established to answer questions on complex trade and customs rules, regulations, and procedures
Reasonable intervals between publication and implementation are not necessary
Mechanisms for prior consultation on new or amended laws and regulations with interested parties should be established
Trade-related laws, regulations, procedures, and documents should be made publicly available and easily accessible
An effective appeal mechanism should be put in place
What are NOT true about the Basic Principles of TF?
Efficient administrative appeal procedures cannot provide traders faster and cheaper means to deliver solutions than courts
Reasonable intervals between publication and implementation are not necessary
Mechanisms for prior consultation on new or amended laws and regulations with interested parties should be established
Trade-related laws, regulations, procedures, and documents should be made publicly available and easily accessible
Customs rulings should not be provided in time and prior to relevant trade transaction upon the written request of an applicant who has provided all necessary information
What are TRUE about Basic Principles of TF?
All trade-related information such as rules, regulations, procedures, and associated documents shall be published to enable governments and traders to become familiar with them
Regulations that have a large impact on trade should be published not only in the national language of a concerned country but also in a foreign language
Reasonable period of time should be maintained between publication and enforcement to give traders and businesses time to get acquainted
Enquiry point is an effective way to enhance transparency of administration as to improve accessibility of trade-related information
A regular consultation with interested parties, prior to new and amended laws and regulations, would minimize negative impacts, enhance trust and cooperation, ensure predictability and improve the quality of regulations
Commercial procedures:
Establish sales contracts
Issue statements
Order goods
Advise on delivery
Request payment
Transport procedures:
Provide cargo declarations
Establish transport and deliver goods
Obtain import/export licences
Provide waybills, good receipts, status reports
Regulatory procedures:
Obtain import/export licences
Provide customs declarations
Provide cargo declarations
Apply trade security procedures
Clear goods for imports/exports
Financial procedures:
Provide credit rating
Provide insurance
Provide credit
Execute payment
Issue statements
Pre-arrival information:
Vessel’s characteristics or [...] particulars, kind and tonnage of cargo, vessel’s ETA and [...] must be notified to the Harbour Master Department every 48hrs, 24hrs or at least [...] hours prior to vessel’s arrival at the port’s anchorage areas
ship’s/master’s requests/eight
vessel’s/master’s requests/eight
ship’s/advance request/six
vessel’s/advance request/six
[True/False]
Arrival information:
The component of the committee that performs vessel clearance consists of 10 members from Harbour Master Department, Department of Customs and Excise, Immigration Police, National Shipping Agency and Broker, and Quarantine Authorities. Ten copies of cargo manifest are required to be provided to the Department of Customs and Excise.
True
False
Hakuna matata~
Simplification:
Process of developing internationally agreed formats for practices and procedures, documents and information
Process of eliminating all unnecessary in formalities, processes and procedures
Alignment of national procedures, operation and documents with international conventions, standards and practices
Process of eliminating all unnecessary and duplications in formalities, processes and procedures
Harmonization:
Process of developing internationally agreed formats for practices and procedures, documents and information
Process of eliminating all unnecessary in formalities, processes and procedures
Alignment of national procedures, operation and documents with international conventions, standards and practices
Process of eliminating all unnecessary and duplications in formalities, processes and procedures
Standardization:
Process of developing internationally agreed formats for practices and procedures, documents and information
Process of eliminating all unnecessary in formalities, processes and procedures
Alignment of national procedures, operation and documents with international conventions, standards and practices
Process of eliminating all unnecessary and duplications in formalities, processes and procedures
{Basic principles and good practices}
Time procedures, data, and documents should be based on international [...], standards, and other relevant instruments. => to improve transparency and predictability
(a)
{Basic principles and good practices}
Data and documents should be kept to a minimum:
Adopt simplified documents aligned with international standards
Use trade data and documents aligned to international standards
Identify redundant or unnecessary documentation
Accept copies of documents
Pre- arrival of processing documents
{Basic principles and good practices}
Data and documents should be kept to a minimum:
+ Adopt simplified documents aligned with [...]
+ Identify redundant or unnecessary documentation
+ Use trade data and documents aligned to [...] (located in the same place/ formatted in the same way) => easier to fill out and minimize errors
+ Accept copies of documents
(a)
{Basic principles and good practices}
Clearance and release procedures should be kept as simple as possible
+ Pre-arrival of processing documents:
• The customs authority should allow traders to submit clearance data prior to arrival of the consignment.
• The data should be processed and analyzed [...] so that consignments can be released immediately upon arrival.
• When duties and other charges are not determined on or prior to arrival, a mechanism allowing for release based on the provision of a (financial) guarantee or surety to customs may also be put in place.
(a)
{Basic principles and good practices}
Clearance and release procedures should be kept as simple as possible:
+ [...] of customs and other border agency procedures for import and export, making it possible for traders to present customs declarations, and other supplementary documents [...]. Ideally, electronic payment of duties, taxes, and fees should also be made possible.
(a)
{Basic principles and good practices}
Clearance and release procedures should be kept as simple as possible:
+ [...] should be put in place, and authorities should systematically use them to conduct documentary and physical examination of shipments
• Such systems allow the identification of the risk level associated with a particular shipment according to specific ([...]) criteria, and based on the analysis of available information.
• The objective is to ease the clearance and release of low-risk consignments, and to identify high-risk consignments for inspection. Such systems should be based on international standards and practices.
(a)
{Basic principles and good practices}
Clearance and release procedures should be kept as simple as possible:
Post clearance audit: is an international best practice by customs designed to facilitate trade by [...] from the border to the [...] of the import clearance process.
• A customs authority may [...] the majority of consignments upon arrival with compliance verification at a later time.
• Such compliance verification is conducted at the importers’ premises, where auditors have access to relevant company records.
• The post-clearance audit system allows the release of low-risk imports with minimum customs intervention at the border.
It therefore facilitates the release of legitimate imports while protecting government revenue.
(a)
{Basic principles and good practices}
Clearance and release procedures should be kept as simple as possible:
Authorized traders schemes should be developed for [...] traders. These schemes provide additional facilitation measures to traders who demonstrate a high level of compliance with import and export requirements such as the possibility of periodic declarations and reduced physical inspections or documentary requirements.
• The selection of authorized traders should be based on risk management techniques.
• Harmonization and mutual recognition of authorized traders schemes with partner countries should be pursued to the extent possible.
(a)
{Basic principles and good practices}
Clearance and release procedures should be kept as simple as possible:
Coordination of border control procedures should be given special attention to ensure that clearance of documents and physical control of consignment by all agencies are conducted at [...]. Coordination and [...] may further include the alignment of working days and hours, development and sharing of common facilities, and development of procedures for exchange of non-confidential information.
(a)
Điền theo thứ tự
(a)
[True/False]
Product standards set out specific characteristics of a product such as size, shape, design, functions, performance, the way it is labeled or packaged before it is put on sale.
True
False
Product standards set out [...] of a product such as size, shape, design, functions, performance, the way it is labeled or packaged before it is put on sale.
(a)
Product standards often referred to as [...] or sanitary and phytosanitary measures, and governed by WTO agreements on Technical barriers to trade (TBT) and on SPS measures.
(a)
Objectives of product standards
To protect human safety and health
To protect animal and plant life and health
To protect environment, consumers against deceptive practices
To ensure quality
To promote trade and technical harmonization
Costs of differing national product standards
- Economies of scale are [...]
- Compliance with technical regulations generally needs to be confirmed through testing, certification, or [...] by laboratories or certification bodies (exporter’s expense)
- The existence of technical standards generates information costs (for evaluating the technical impacts of foreign regulations on the production process, translating and disseminating product information, and training experts
- Exporter may face additional unexpected costs if confronted with new regulations
(a)
[True/False]
Technical and sanitary standards and requirements are among the least problematic trade facilitation issues.
True
False
Technical and sanitary standards and requirements are among the most problematic trade facilitation issues.
• Exporters in developing countries face the prospect of [...] of their agricultural and food shipments upon arrival in developed countries, often on the ground of insanitariness and contamination
• Import restrictions imposed on the basis of [...] with sanitary or phytosanitary requirements
(a)
Product standards - State of Play:
Key concern from a trade facilitation perspective is the efficiency of the conformity assessment procedures
Technical and sanitary standards and requirements are among the most problematic trade facilitation issues
Developing countries have reported various problems in relation to conformity assessment procedures
Key concern from a trade facilitation perspective is the efficiency of the technical regulations
Impact of product standards on trade:
Nontariff barriers to trade in the form of technical requirements and standards, SPS measures pose a major challenge to economists
The impact on trade is second order to the benefits in terms of improved health, safety and environment conditions
With transparent regulations, they promote market intentionally and domestically
Divergent standards may create an undesirable bias in favor of domestic firms
With transparent regulations, they promote market intentionally and internationally
Objectives of TBT and SPS Agreement:
Pursuit of trade liberalization => avoiding unnecessary barriers to international trade
Member’s right to regulate =>right of members to protect human, animal, plant life or health/to fulfill legitimate objectives at levels they consider appropriate
Pursuit of trade facilitation => avoiding unnecessary barriers to international trade
Member’s right to regulate =>right of members to protect human, animal, plant life or health/to fulfill legitimate objectives at all levels
The TBT Agreement
It applies to all:
- [...] (mandatory)
- Standards (voluntary)
- Conformity assessment procedures
For all products, industrial and agricultural
It’s provisions do not apply to SPS measures
(a)
The SPS Agreement
Objectives of the SPS Agreement:
The right to protect [...] life or health
Avoiding unnecessary barriers to trade
(a)
[True/False]
SPS Agreement- Basic Right:
“Member have the right to take sanitary and phytosanitary measures necessary for the protection of human, animal or plant life or health, provided that such measures are inconsistent with the provisions of this Agreement”
True
False
What are SPS measures?
The measures to protect:
Human or animal health: from arising from additives, contaminants, toxins or disease organisms in food, drink, feedstuff
Human life: from plant or animal- carried diseases
Animal or plant life: from pets, diseases, disease- causing organism
A country: from other damage caused by entry, establishment or spread of pets
{SPS}
Human or animal health: from arising from additives, contaminants, toxins or disease organisms in food, drink, feedstuff:
Limits on residues in fish and selfish
Limits on aflatoxin residues in nuts
HACCP to limit risks from salmonella (Hazard Analysis and Critical Control Points: a preventive approach to food safety
Avian influenza measures
{SPS}
Human life: from plant or animal- carried diseases:
Avian influenza measures
Measure to prevent introduction of fruit flies
Requirement that susceptible animals be vaccinated against rabies
Seed regulation to avoid introduction of exotic weeds
{SPS}
Animal or plant life: from pets, diseases, disease-causing organism:
Limits on aflatoxin residues in nuts
Requirement that susceptible animals be vaccinated against rabies
Measures to prevent introduction of FMD (Foot and Mouth Disease in cattle)
Measure to prevent introduction of fruit flies
{SPS}
A country: from other damage caused by entry, establishment or spread of pets:
Avian influenza measures
Measures to prevent introduction of zebra mussels through ballast water of ships
Requirement that susceptible animals be vaccinated against rabies
Seed regulation to avoid introduction of exotic weeds
SPS Measures:
Human or animal health from food-borne risks
Nutritional claims
Human health from animal or plant- carried diseases
Animals or plants from pets or disease
Human disease control (unless it’s food safety)
TBT Measures:
Human or animal health from food-borne risks
Nutritional claims
Human disease control (unless it’s food safety)
Animals or plants from pets or disease
Food packaging and quality
SPS:
Right to restrain trade when necessary to protect health
Measures based on scientific principles
Non-discrimination
No disguised restrictions
Transparency
[...] to international standards
(a)
TBT:
Right to restrain trade when necessary to fulfill [...] objectives (including health)
Technical regulations take into consideration inter alia available scientific and technical information
Non-discrimination
No disguised restrictions
Transparency
Use of ‘[...]” international standards
(a)
Product standards - Basic principles and good practices:
Nondiscrimination
Avoidance of unnecessary obstacles to trade
Harmonization
Transparency
Equivalence and mutual recognition
Product standards - Basic principles and good practices:
Nondiscrimination
- Technical regulations should accord products imported from any country a treatment [...] favorable than [...] products of national origin or originating from any other country
- Note: SPS measures (to prevent the entry of plant or animal-borne pests and disease into a country)
(a)
Product standards - Basic principles and good practices:
Avoidance of unnecessary obstacles to trade:
- Technical regulations should be made [...] restrictive than necessary to fulfill legitimate objective
- They should be based on the risk associated with [...], which should be assessed according to information, and intended end uses products.
(a)
Product standards - Basic principles and good practices:
Harmonization:
- Technical regulations should, to the extent possible, be [...] international standards developed by international standard setting organizations (FAO), ISO, UNECE, WHO…
(a)
Product standards - Basic principles and good practices:
Transparency:
- Technical requirements should be prepared, adopted, and applied in a transparent manner
- Good practices includes:
+ Allowing a period of at least 60 days for a submission of comments on a draft standards by interested parties
+ Promptly providing copies of the draft to interested domestic and foreign parties
+ Incorporating relevant comments received in the final standard and explaning
+ Promptly [...] the standard once it has been adopted
+ [...] trading partners (through WTO) and allowing sufficient time for interested parties to get acquainted with the standard before it is enforced
(a)
Product standards - Basic principles and good practices:
Equivalence and mutual recognition:
- Technical regulations and standards in foreign countries should be recognized as [...] provided they fulfill or satisfy the objectives of national regulations
- Whenever possible, countries should seek to [...] each other standards and regulations
(a)
Facilitating conformity assessment
• Limit the amount of required information to what is necessary to assess conformity and determine fees
• Complete conformity assessment procedures as expeditiously as possible
• [...]-laterally accept the results of the conformity assessment procedures in other countries whenever possible
• Allow conformity assessment bodies located in [...] countries to participate in conformity assessment procedures.
• Follow conformity assessment guides and recommendations issued by international standardizing bodies
• Negotiate mutual recognition agreements for conformity assessment
• Develop an internationally accredited national accreditation system for conformity assessment bodies.
(a)
- Transit trade is a country’s foreign trade that passes through a third country prior to reaching its final country of destination
- Traffic in transit refers to the goods and means of transport passing through a third country on their way to the final country of destination.
- Both the goods and the means of transport, as well as its [...], are [...] to territory-specific laws and regulations, administrative requirements, commercial practices and operations, and technical standards
- At the time of crossing the border between one territory and the next, the differences in the trade environment between the two create [...] => additional costs and delays => reduce the competitiveness of the delivered goods
(a)
Discrepancies at the border:
Goods (product standards, etc)
Services
Operations
Vehicles
Infrastructure
Products conformity, standards and regulations
-> These belong to:
Goods
Services
Operations
Vehicles
Infrastructure
Commercial regulations and practices
-> These belong to:
Goods
Services
Operations
Vehicles
Infrastructure
Traffic regulations and operational practices
-> These belong to:
Goods
Services
Operations
Vehicles
Infrastructure
Vehicle standards and regulations
-> These belong to:
Goods
Services
Operations
Vehicles
Infrastructure
Design, construction, maintainance, and inter-operability
-> These belong to:
Goods
Services
Operations
Vehicles
Infrastructure
Transit trade - State of Play:
- Transit operations are severe obstacles => significant additional transport and administrative costs for imports and exports of landlocked developing countries
- landlocked developing countries suffer from [...] procedures and extremely [...] costs for both imports and exports.
- [...] waiting time at border crossings is a major contributor to high cost in transit transport operations.
(a)
Transit trade - State of Play:
- The cooperation on transit is usually undermined by the [...] between the public and the [...] sector as well as between neighboring countries.
=> the physical inspection rates of traffic in transit in some developing countries remain very high
- Payments of unofficial rents are frequent and sometimes very large
- The quality and quantity of transport infrastructure, particularly roads and railways, have a direct impact on transport cost of goods in transit
(a)
{Transit trade - State of Play}
Almaty Program of Action:
– non-transparency of trade and customs laws, regulations, and procedures, compounded by lack of institutional capacities and trained human resources;
– excessive numbers of documents required for export and import, complicated and nonstandard procedures for customs clearance and inspections, and lack of adjacent border controls;
– multiplication of scheduled and unscheduled roadblocks as well as unnecessary customs convoy requirements;
– insufficient application of information and communications technology, leading to poor or total lack of computerized customs procedures;
– [...] logistics services, lack of interoperability of transport systems, and absence of competition in the transit transport services sector; and
– [...] level of [...] to inter-national conventions on transit transport.
(a)
Transit trade - Principles:
Freedom of transit
Nondiscrimination
Transparency and avoid unnecessary trade restrictions
Harmonization
Transit trade - Measures:
Grant traffic in transit expedited and simplified treatment at the border
Establish an effective customs guarantee system for goods in transit
Strengthen coordination and cooperation between authorities on both sides of the border
Bilateral and regional transit agreement:
- Facilitation of the border crossing of [...]
- Facilitation of the crossing of [...]
- Facilitation of the crossing of [...] engaged in transport operations (crew, drivers of commercial vehicles)
- Facilitation of the crossing of commercial road vehicles
- infrastructure and equipment
- Coordination of border crossing infrastructure construction and equipment installation
- Other facilitation measures related to transit
(a)
{Basic principles and good practices}
Time procedures, data, and documents should be based on international conventions, standards, and other relevant instruments. => to improve [...] and [...]
(a)
{Basic principles and good practices}
Data and documents should be kept to a minimum:
+ Adopt simplified documents aligned with international standards
+ Identify [...] documentation
+ Use trade data and documents aligned to [...] (located in the same place/ formatted in the same way) => easier to fill out and minimize errors
+ Accept copies of documents
(a)
{Basic principles and good practices}
Clearance and release procedures should be kept as simple as possible
+ Pre-arrival of processing documents:
• The customs authority should allow traders to submit clearance data [...] to arrival of the consignment.
• The data should be processed and analyzed without delay so that consignments can be released immediately upon arrival.
• When duties and other charges are not determined on or prior to arrival, a mechanism allowing for [...] based on the provision of a (financial) guarantee or surety to customs may also be put in place.
(a)
{Basic principles and good practices}
Clearance and release procedures should be kept as simple as possible:
+ Risk management should be put in place, and authorities should systematically use them to conduct documentary and physical examination of shipments
• Such systems allow the identification of the risk level associated with a particular shipment according to specific (nondiscriminatory) criteria, and based on the analysis of available information.
• The objective is to [...] the clearance and [...] of low-risk consignments, and to identify high-risk consignments for inspection. Such systems should be based on international standards and practices.
(a)
{Basic principles and good practices}
Clearance and release procedures should be kept as simple as possible:
Post clearance audit: is an international best practice by customs designed to facilitate trade by refocusing control from the border to the back end of the import clearance process.
• A customs authority may release the majority of consignments upon arrival with compliance verification at a later time.
• Such compliance verification is conducted at the [...]’ premises, where auditors have access to relevant company records.
• The post-clearance audit system allows the release of [...] imports with minimum customs intervention at the border.
It therefore facilitates the release of legitimate imports while protecting government [...]
(a)
{Basic principles and good practices}
Clearance and release procedures should be kept as simple as possible:
Authorized traders schemes should be developed for highly compliant traders. These schemes provide additional facilitation measures to traders who demonstrate a high level of compliance with import and export requirements such as the possibility of periodic declarations and reduced [...] inspections or documentary requirements.
• The selection of authorized traders should be based on [...] techniques.
• Harmonization and mutual recognition of authorized traders schemes with partner countries should be pursued to the extent possible.
(a)
Product standards often referred to as technical regulations or [...], and governed by WTO agreements on Technical barriers to trade (TBT) and on SPS measures.
(a)
Costs of differing national product standards
- Economies of scale are lost
- Compliance with technical regulations generally needs to be confirmed through testing, certification, or inspection by laboratories or certification bodies (exporter’s expense)
- The existence of technical standards generates [...] costs (for evaluating the technical impacts of foreign regulations on the production process, translating and disseminating product information, and training experts
- Exporter may face [...] costs if confronted with new regulations
(a)
Technical and sanitary standards and requirements are among the most problematic trade facilitation issues.
• Exporters in developing countries face the prospect of detentions of their agricultural and food shipments upon arrival in developed countries, often on the ground of [...]
• Import restrictions imposed on the basis of non-compliance with sanitary or phytosanitary requirements
(a)
The TBT Agreement
It applies to all:
- Technical regulations (mandatory)
- [...] (voluntary)
- Conformity assessment procedures
For all products, industrial and agricultural
It’s provisions [...] apply to SPS measures
(a)
SPS:
Right to restrain trade when necessary to [...]
Measures based on [...] principles
Non-discrimination
No disguised restrictions
Transparency
Harmonization to international standards
(a)
TBT:
Right to restrain trade when necessary to fulfill legitimate objectives (including health)
Technical regulations take into consideration inter alia available [...] information
Non-discrimination
No disguised restrictions
Transparency
Use of "relevant" international standards
(a)
Product standards - Basic principles and good practices:
Transparency:
- Technical requirements should be prepared, adopted, and applied in a [...] manner
- Good practices includes:
+ Allowing a period of at least [...] days for a submission of comments on a draft standards by interested parties
+ Promptly providing [...] of the draft to interested domestic and foreign parties
+ Incorporating relevant comments received in the final standard and explaning
+ Promptly publishing the standard once it has been adopted
+ Notifying trading partners (through WTO) and allowing sufficient time for interested parties to get acquainted with the standard before it is enforced
(a)
Facilitating conformity assessment
• Limit the amount of required information to what is [...] to assess conformity and determine fees
• Complete conformity assessment procedures as [...] as possible
• Unilaterally accept the results of the conformity assessment procedures in other countries whenever possible
• Allow conformity assessment bodies located in foreign countries to participate in conformity assessment procedures.
• Follow conformity assessment guides and recommendations issued by international standardizing bodies
• Negotiate mutual recognition agreements for conformity assessment
• Develop an internationally accredited national accreditation system for conformity assessment bodies.
(a)
Facilitating conformity assessment
• Limit the amount of required information to what is necessary to assess conformity and determine fees
• Complete conformity assessment procedures as expeditiously as possible
• Unilaterally accept the results of the conformity assessment procedures in other countries whenever possible
• Allow conformity assessment bodies located in foreign countries to participate in conformity assessment procedures.
• Follow conformity assessment guides and recommendations issued by international standardizing bodies
• Negotiate [...] agreements for conformity assessment
• Develop an internationally [...] national accreditation system for conformity assessment bodies.
(a)
- Transit trade is a country’s [...] trade that passes through a [...] country prior to reaching its final country of destination
- Traffic in transit refers to the [...] passing through a third country on their way to the final country of destination.
- Both the goods and the means of transport, as well as its operator, are subject to territory-specific laws and regulations, administrative requirements, commercial practices and operations, and technical standards
- At the time of crossing the border between one territory and the next, the differences in the trade environment between the two create trade barriers => additional costs and delays => reduce the competitiveness of the delivered goods
(a)
Transit trade - State of Play:
- Transit operations are severe [...] => significant additional transport and administrative costs for imports and exports of [...] developing countries
- landlocked developing countries suffer from time-consuming procedures and extremely high costs for both imports and exports.
- long waiting time at border crossings is a major contributor to high cost in transit transport operations.
(a)
Transit trade - State of Play:
- The cooperation on transit is usually undermined by the mistrust between the public and the private sector as well as between neighboring countries.
=> the physical inspection rates of traffic in transit in some developing countries remain very high
- Payments of [...] rents are frequent and sometimes very large
- The quality and quantity of transport [...], particularly roads and railways, have a [...] impact on transport cost of goods in transit
(a)
{Transit trade - State of Play}
Almaty Program of Action:
– [...] of trade and customs laws, regulations, and procedures, compounded by lack of institutional capacities and trained human resources;
– [...] numbers of documents required for export and import, complicated and nonstandard procedures for customs clearance and inspections, and lack of adjacent border controls;
– multiplication of scheduled and unscheduled roadblocks as well as unnecessary customs convoy requirements;
– insufficient application of information and communications technology, leading to poor or total lack of computerized customs procedures;
– underdeveloped logistics services, lack of interoperability of transport systems, and absence of competition in the transit transport services sector; and
– low level of adherence to inter-national conventions on transit transport.
(a)
{Transit trade - State of Play}
Almaty Program of Action:
– non-transparency of trade and customs laws, regulations, and procedures, compounded by lack of institutional capacities and trained human resources;
– excessive numbers of documents required for export and import, complicated and nonstandard procedures for customs clearance and inspections, and lack of adjacent border controls;
– [...] of scheduled and unscheduled roadblocks as well as unnecessary customs convoy requirements;
– [...] application of information and communications technology, leading to poor or total lack of computerized customs procedures;
– underdeveloped logistics services, lack of interoperability of transport systems, and absence of competition in the transit transport services sector; and
– low level of adherence to inter-national conventions on transit transport.
(a)
Bilateral and regional transit agreement:
- Facilitation of the border crossing of cargo
- Facilitation of the crossing of containers
- Facilitation of the crossing of people engaged in transport operations (crew, drivers of commercial vehicles)
- Facilitation of the crossing of [...]
- [...] and equipment
- [...] of border crossing infrastructure construction and equipment installation
- Other facilitation measures related to transit
(a)
